A person with the utility function U(x, y) = y + x²has convex preferences.

Name: A person with the utility function U(x, y) = y + x 2 has convex preferences.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A utility function is convex if its second derivative is non-negative. The second derivative of U(x, y) with respect to x is 2, which is positive, indicating convexity in x, but the function is linear in y, which does not satisfy the convexity condition for y. Therefore, the preferences are not convex overall.

A Person with the Utility Function U(x, Y) = Y